If you’re an avid TV watcher such as myself, you have undoubtedly been bombarded with ads for car insurance. Each company, with its own unrelateable commercial, boasts it can save money over the other guys. But we know the truth; the only true way to save money is to shop around for the best deal and coverage. Sure, that is necessary so as not to get steamrolled on price, but there are other ways to save money.
First, let’s begin with car insurance companies that you are happy with as far as coverage and service, and would like to keep the company as your carrier, but ultimately want to lower your price anyway. Begin by looking over your explanation of benefits (EOB). You may or may not discover coverage or perks you didn’t even know about. If you find coverage/perks that you don’t need or want, see about dropping that portion of coverage. State law requires some minimum coverage, but it doesn’t hurt to find out if that unnecessary coverage can be dropped. After that, ask about discounts. Is there a discount for renewing your policy? If you’ve been a member for a long time, is there a long-term member discount? Is there a discount for anti-lock breaks, airbags, and anti-theft systems? How about a safe driver discount and low miles discount? More often than not there is a discount for paying every 6 months versus paying every month. Also, most insurance companies offer discounts for bundling two or more policies together, such as auto and home. And did you know some companies offer discounts for having a low-risk occupation? Sometimes big companies like Costco or AAA offer auto insurance discounts too. Lastly, ask about increasing your deductible. A switch from a $200 deductible to a $500 deductible can have a drastic beneficial effect to your overall premiums.
But suppose you’re unhappy with your insurance carrier. In this case, hunting discounts on sub-par coverage probably isn’t going to cut it. When shopping around for a new insurance company, go for a well-known carrier. They’ll cost more than a company you’ve never heard of before, but you’re also guaranteed not to get caught with your pants down when the call for insurance is needed. This makes up for slightly higher premiums. Next, get multiple quotes. There’s no such thing as too many choices. Once you’ve found a company you like, you have two choices; stick with them or shuffle between companies. Though long-term members tend to reap the benefits of sticking with a single insurance carrier, there’s something to be said about insurance hopping.
Have you ever noticed on those pre-mentioned TV ads how they always say switch and save? That’s because these companies want your business, and the sheer act of switching itself can save money. This brings me back to insurance hopping. Obtain insurance from a reputable company, pay the 6 month premium (for optimum savings), then when your policy expires, find a different company. Repeat the process. After two years, you can go full circle back to the first company you started with. Because you’re switching every 6 months, you’re always getting the newest freshest discount for being a new member. And no matter how low your premiums are, there’s always a company out there offering better for lower price. The trick is to get it while it’s new then switch before the offer gets stale.
And there you have it. Whether you’re in the market for a new auto insurance carrier or looking for a way to spice up the policy you have, follow these tips, and you can make the most of your coverage.
Image Credit: car-insurance-saver